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Essay heading: Xm Radio
 
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Issue: Business
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Date added: September 19, 1998
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No of pages / words: 7 / 1944
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XM will need to charge a monthly fee and a small retail price for the listening device in order to make a profit and cover the cost of manufacturing the radio device. The estimated cost of XM-equipped radios is $270 per unit plus a 30% margin charged to retailers by the manufacturer and a 30% margin charged to the customer by the retailer...
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The estimated cost of XM-equipped radios is $270 per unit plus a 30% margin charged to retailers by the manufacturer and a 30% margin charged to the customer by the retailer. This price will amount to $550. XM will be most profitable when they charge a $12 subscription fee, assuming a 5 year customer lifetime value, with the purchase of a $100 satellite radio for the home or for the car...
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